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China pace cools as exports slow
17.07.08
China's economic expansion cooled to its slowest pace since 2005 on lower demand for exports, and a rising yuan.
Second-quarter gross domestic product grew to 10.1% from 10.6% in the first, the statistics bureau in Beijing said today.
Consumer prices rose 7.1% in June against May's 7.7%. Beijing is now under pressure to switch from fighting inflation to protecting exporters by slowing the yuan's appreciation against the dollar, which was 7.1% this year. The Ministry of Commerce has urged China's Cabinet to rein in currency gains and increase some export rebates.
China's economy has grown an average 9.9% a year since leader Deng Xiaoping ditched hardline Communist policies in favour of free-market reforms in 1978.
It remains the world's fastest growing economy and is driving a booming market for resources.
